The Association of Forex Dealers (AFD), a Russian self-regulatory organization (SRO), has been entered into the SRO register of the Central Bank of Russia (CBR), according to data published on Wednesday by the central bank.
The AFD applied for registration in May this year, just a couple of months after the CBR established the register. The regulator said at the time that organizations that have been active as self-regulatory bodies for at least a year would receive a registered SRO status within months. Members of the AFD include licensed forex brokers Finam Forex, TeleTrade, and TrustForex.
AFD intends to include in the near future all licensed forex brokers in the country, AFD head Evgeny Masharov was cited as saying in a separate statement issued by the organization.
AFD joins a rather long list of registered SROs in Russia, including National Securities Market Association (NFA), Self-regulatory Organisztion Edinstvo (SRO Edinstvo), Professional Association of Registrars, Transfer Agents and Depositories (PARTAD), National Association of Stock Market Participants (NAUFOR), and others.
Some of the leading SROs in the financial markets, however, are still missing from the register. One reason for this are the contradictory rules under which a SRO can only be registered if at least one of its members is a licensed forex broker, while forex brokers can obtain a CBR license only if they partake in a SRO with at least 10 members.
The CBR established the SRO register as part of an ongoing reevaluation and reinvention of the financial markets. As of 1 January, 2016, Russia started requiring locally-based forex brokers to be licensed by the CBR in order to operate in the country. Last week, the central bank announced it intends to determine its position regarding binary options trading in the country by the end of 2017.